1. The historical monetary ratio of gold to silver
is 1:16 to 1:12, which means that silver should rise
200%+ faster than gold.
2. The natural mining ratio coming out of the Earth
of gold to silver is 1:10, which means that silver should rise 350% faster
than gold.
3. The ratio of gold to silver at the CRIMEX is 1:9. There is 11,575,304 ounces in total registered
and eligible Gold holdings and 105,694,470 ounces in total registered and
eligible silver holdings. (In late 2008 there was
approximately 3,000,000 ounces of Registered gold at the CRIMEX and
85,000,000 ounces of registered silver, that was a 1:28 GSR back then.)
4. If we understand that all of the gold ever mined
has been treasured by humanity as a truly precious metal, while silver has
been used and abused as an industrial metal, this Gold to Silver ratio must
be lower than either of the above ratios. Most
silver is used in such small quantities that it is uneconomical to try to
recycle a few grams out of an old cell phone.
5. All of the major stockpiles of silver that all of
humanity ever mined are gone.
The US government had 5 billion ounces of silver in 1950. Only 29 million
ounces in the Registered vaults of the CRIMEX.
6. Silver is second only to oil for the amount of
uses of any commodity. It is the
indispensable metal with so many vital uses. As we move from a carbon economy
into a new technological economy, silver may become more vital than oil to
the next paradigm with its uses in solar, tech and medical industries. These
industries are incredibly profitable industries and they use such small
quantities of metal that the price is unimportant. This demand for industrial
use makes silver more important than gold.
7. Silver has started to catch investment demand,
but so far most of the money has gone into paper derivatives of silver like
SLV, futures or mining stocks. At
some point investors are not going to settle for anything less than the real
physical metal. This should have a dramatic effect on the price of silver due
to all of the blatant price manipulation pointed out by Andrew MacGuire. He and others have claimed that there are as
much as 100 to 1 paper ounces of gold and silver traded for every physical
ounce of gold and silver available. The day they can’t deliver there
will be a mad rush to claim the real metal from industrial users and
investors alike.
8. Silver has naturally been used as money more
times and more often than gold. In
a world about to lose faith in all paper currencies, silver will once again
find a unlimited demand to be used as money once
again. This demand on top of the investment and industrial demands will be a
powerful force on the metal that gold simply does not have.
9. There is already a 1:1 ratio of dollars invested in
gold and silver in Sprott Asset Management
, GoldMoney and the US Mint. The 1:43 ratio we
currently have cannot sustain that much of a dollar demand difference, without
coming closer to 1:1.
10. The 1:1 Gold to Silver Ratio has happened
before.
“For the first time in history, silver coin,
of the leading nations of Europe sold at a higher price than gold coin. This
of course does not mean that silver is more valuable than gold, merely a
silver dollar or shilling is worth more than a gold dollar or
shilling.” - Silver the
World Sensation in 1919-1920
11. Finally, the USGS said that silver has the very real
possibility of becoming the first element on the periodic table to become
extinct by 2020. That is in 9 years! That is less than
9/11 ago. This means that unless there is a massive revaluation of silver and
we keep consuming silver at this pace, there will not be any silver left.
This alone should make silver rise to unprecedented heights.
Ref: Ref saya
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